South Africa New Water Resources Infrastructure

South Africa’s Department of Water and Sanitation (DWS) plans to establish a state-owned entity, the National Water Resources Infrastructure Agency (NWRIA), by April 2026 through an Act of Parliament. 

The new agency is a consolidation of the various entities within DWS into a single agency to provide more oversight for the monitoring of national water assets, including improving revenue collection, governance and compliance by municipalities across the country. The agency will also oversee the development of South Africa’s water infrastructure projects, as well as be responsible for sourcing funding for all aspects of the projects, including implementation, operation and maintenance of water infrastructure as efficiently and expediently as possible. Source: https://www.parliament.gov.za/news/plans-are-underway-establish-single-water-resource-agency 

South Africa is shifting towards a Public-Private Partnership (PPP) model and blended finance to attract private capital. The Development Bank of South Africa (DBSA) has set up a Water Partnerships Office, the first of its kind, for this purpose. Please refer to https://www.dbsa.org/press-releases/wrp-application for more information.

Additionally, the government is looking to derisk large infrastructure investment to attract private capital and developers by creating a credit guarantee vehicle in 2026. Its initial focus will be on energy, but it is likely to expand to water, due to the water crisis. Please refer to:  https://www.sanews.gov.za/south-africa/government-reaffirms-commitment-independent-transmission-programme 

Below are examples of current and planned water infrastructure projects in South Africa:

               Free State

• The Vaal Central Water Board is assisting the Maluti-a-Phofung and Matjhabeng Local Municipalities with a range of projects to address the dire state of water and sanitation infrastructure in the two municipalities. These projects are worth around USD270 million over the next 5 years. 

               KwaZulu Natal

• The uMngeni-uThukela Water Board and Zululand District Municipality – USD525 million Mandlakazi Bulk Water Supply Scheme to benefit communities ln Zululand and uMkhanyakude District Municipalities. The pipeline includes abstraction of raw water from Jozini Dam, laying of an 11 Mile bulk line, a pumpstation and upgrading of Mandlakazi Water Treatment Works, Mkhuze Water Treatment Works and others. https://www.sanews.gov.za/south-africa/work-complete-mandlakazi-regional-bulk-water-scheme-continues  
  •    The new USD 140 million Upper uMkhomazi Dam and associated works which will provide additional water to eThekwini and surrounding districts including Ugu, Harry Gwala, iLembe and Mgungundlovu. https://www.dws.gov.za/iwrp/uMkhomazi/default.aspx   
  •    The Ncwabeni off-channel storage dam construction provides bulk water to Port Shepstone and surrounding areas. Project value: USD 100 million. https://www.dws.gov.za/iwrp/NCWABENI/  
  •    The new Stephen Dlamini Dam project for USD 44 million to provide sustainable water supplies to the town of Bulwer and surrounding peri-urban and rural communities. https://newsletter.en.creamermedia.com/article/stephen-dlamini-dam-project-south-africa-2025-09-26 

  Mpumalanga

  •    The Loskop Regional Bulk Water: Construction of a bulk pipeline from Loskop Dam in Mpumalanga to Thembisile Hani Local Municipality in Mpumalanga for domestic water supply. This includes distribution infrastructure to supply treated water to villages in Moutse-East Project value: USD 90 Million. https://www.thembisilehanilm.gov.za/sites/default/files/16.%20Loskop%20Regional%20Bulk%20Water%20Supply%20Scheme%20%2816-09-2024%29%20%281%29.pdf 

  Gauteng

  •    Rand Water is working with the Emfuleni and Midvaal Local Municipalities on several projects to address the sanitation challenges in the Vaal. This includes blocked and collapsed sewage pipelines, repairing and refurbishing pumpstations, and assisting the Emfuleni Municipality to restore its operation and maintenance functions. The investment is estimated at USD 260 Million.

  Eastern Cape

  •    The new Foxwood Dam provides additional water for irrigation and for the town of Adelaide. Value: USD 110 million. https://www.dws.gov.za/iwrp/FoxwoodDam/   
  •    The new Zalu Dam will provide additional water for the town of Lusikisiki and surrounding villages. USD 55 million. https://newsletter.en.creamermedia.com/article/zalu-dam-project-south-africa-2025-09-26  
  •    The new Coerney Balancing Dam will improve water security for the Nelson Mandela Bay Metropolitan area. Value: USD 33 Million. https://www.dws.gov.za/iwrp/Lower%20Coerney%20Balancing%20Dam/default.aspx  
  •    Mnquma Municipality plans to provide water to unserved communities, through the Nqamakhwe Regional Bulk Water Scheme and provide funding to develop the Lower Sundays River, Greater Mbizana, and Ndlambe water schemes  

  Limpopo

  •    The Lepelle Northern Water is implementing Phase 1 of the Olifants Ebenezer aimed at bringing relief and sustainable water provision for Polokwane, Seshego and surrounding areas. This part of the project is valued at an estimate USD 261 million and is part of a 10-year USD 1 billion program.
  •    Raising the wall of the existing Tzaneen Dam will help lower water shortages in Tzaneen and surrounding areas. Project value: USD 44 million. https://www.gov.za/news/media-statements/water-and-sanitation-timeline-raising-tzaneen-dam-wall-project-limpopo-11-jun   
  •    The new N’wamitwa Dam on the Great Letaba River will provide additional water for irrigation, and domestic and industrial use and increase flows into the Kruger National Park. Project Value: USD 220 million. https://www.tcta.co.za/wp-content/uploads/2025/07/1-Nwamitwa-Dam-PSP-RFB-Main-REV-3-3072025-1306.pdf  

  Western Cape

  •    A USD 660 million project is underway to divert water from the Berg River and direct it to the existing Voëlvlei Dam. This would increase the supply of water to the City of Cape Town and surrounding areas. https://www.dbsa.org/projects/berg-river-voelvlei-augmentation-scheme  

  Northern Cape

  •    Olifants River Water Resource Development Project in Limpopo and the USD 550 million Vaal Gamagara Phase Two Project in the Northern Cape: these two projects are being implemented in partnership with the mining sector, with joint funding by the government and the mines. Both projects will increase water supply and ensure water security to enable investment in mining. Communities adjacent to the bulk pipelines will also benefit from these projects.

  •    Kimberley Bulk Water Supply Project Emergency Refurbishment, including the refurbishment of the Riverton Water Treatment Plant, as well as emergency leak repairs at Newton Reservoir Complex. https://www.kimberley.org.za/kimberley-water-supply-updates-6-oct-2023/  
  •    The Vaal GamGagara Phase Two Project in the Northern Cape will provide additional water for mining and communities. https://www.cesa.co.za/wp-content/uploads/2024/03/Session-6_1_Maraka-Marcia_DWS_CESA-Infrastructure-Indaba.pdf 

   

These projects form part of a solution to address South Africa’s dire water infrastructure problems, and present opportunities to U.S. companies for public-private partnerships (PPP), and technologies such as leak detection, water treatment systems, pump technology, monitoring, and digitization.

For more information, please contact Felicity Nagel, US Commercial Service in Cape Town South Africa on: Felicity.Nagel@trade.gov